Inflation is not dead. Gold will continue to glitter once fear subsides
Gold is trading at near all-time highs, but will investors lose interest when the crisis wrought by Covid-19 passes?
“Gold has always kept its value ever since the Pharaohs of Kush got theirs from the mines of Ethiopia,” says Bevan Jones, CEO of African Source Markets. “It has rallied on fear but also the sheer amount of quantitative easing that has come into the market. A lot of cryptocurrencies are also backing themselves with gold.
“I have no doubt that it’ll go back above $2000 - before the end of 2020 most likely - and continue going up. It will always keep its value as a hedge against inflation.
“Inflation is not dead. It’s in a deep slumber and it’ll come back like a thief in the night.”
“I understand why people hold onto gold as a store of value,” says Ilja Graulich, Head of Investor Relations and Communications at Tharisa. “I have gold in my portfolio. There’s an allure to it. I’m not sure inflation is dead.”
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